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I converted $20000 from my tradition IRA to roth IRA 6 months ago. I asked tax withheld from the $20000. SO the actual amount which went into the ROTH IRA is 16000. Now, I realize my income is too high to convert. So I want to recharacterize the ROTH back to traditional IRA. But the $4000 withheld tax can not be recharacterized.

If I file tax refund for the $4000, it will be considered an early distribution from traditional IRA and I will have to pay 10% panelty for that. How can I avoid that? Any suggestion would be appreciated.

Thank you very much.

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